Americans want to work longer to support themselves as the cost of living climbs and 401(k) benefits are further delayed, but many older Gen X workers and young boomers are being forced into retirement after being laid off with no jobs to turn to.
Among U.S. citizens between the ages of 50 and 65, 14% were laid off once in the past 10 years, with 4% being fired more than once, according to a WSJ analysis of Boston College’s 2012 to 2022 Retirement Study. And of those who experienced layoffs at least once, 24% were not able to find a new job. That group is almost entirely represented by the Gen X cohort of workers, who are aged 45 to 60, and often hold competitive senior roles in the later years of their career.
But having years of industry expertise and a long-standing career doesn’t mean they’re the first-choice candidates for open roles. Older generations often have to look longer to find a gig; Gen Z and millennials aged between 25 and 34 were typically unemployed for an average of 19 weeks, compared to employees aged 55 to 64 who were unemployed for 26 weeks. Even among those Gen Xers who could find a new gig, the analysis notes that 11% were forced to take a pay cut.
There are a few reasons why Gen Xers are having a harder time getting new work after being fired. As the eldest generation still largely in the workforce, they’re nearing retirement and are potentially seen as being more temporary compared to millennial and Gen Z workers with decades left in their careers. Plus, with more Americans working longer, there is simply more competition for a select number of senior roles.
Why Gen Xers are working later and having a hard time finding work
There are some Americans nearing the typical retirement age of 65, but choosing to work longer out of passion for their careers. But many others are delaying their next era of rest and relaxation, opting to stay in the workforce out of pure necessity.
Around 81% of Gen X workers say that their current job doesn’t pay enough to make them feel financially secure, according to a 2024 data from Deputy analyzed by Fortune. And they’re feeling the money squeeze more than others, as only 75% of Gen Z, 73% of millennials, and 71% of baby boomers say the same.
“Many Gen X workers are facing intense financial pressure—from rising costs to juggling the responsibilities of caring for both children and aging relatives, all while managing the highest average debt of any generation in the U.S,” Deputy’s CEO Silvija Martincevic told Fortune.
Just as financial pressure peaks, many Gen Xers are finding themselves overlooked, underpaid, and edged out. Dubbed the “Forgotten Generation,” they’re often overlooked as vital workers, despite making up one-third of the U.S. workforce. Gen X is 18% less likely than other generations to say they feel a strong sense of belonging at their organization, according to a 2024 report from Achievers. This generation is also 30% less likely than others to say they’re meaningfully recognized at work.
Being overlooked is having some serious ramifications on Gen Xers’ careers.
Nearly half of workers over the age of 40 report earning less than their younger coworkers, according to a 2024 study from Resume Now, and about 49% say they make less money than their Gen Z and young millennial colleagues for doing the same job.
Due to ageism and the expectation they’ll retire soon, Gen Xers are also being passed up on getting career opportunities and unlocking bigger paychecks. About 22% of employees 40 and up say their workplaces skip over older workers for challenging assignments, and 16% say they’ve witnessed a pattern of being passed over for promotions in favor of younger staffers.
